The transacted prices there are misleading (showing u the delayed data, which is higher than the current price). The prices dont telly with the subsale prices on property sites.

Still waiting for the crash

Why isnt this listed in the property talk forum topics? This is a very good topic

I have seen 1300psf launching price property, now selling at 4xx psf.

WOW, thats a quick quote from stock exchange to property bubble topic

I hope that more people see this post and dont chase high in auctions and/or subsale and/or new projects.
Dont be misleaded by auction/property gurus to keep the bidding/chasing high. And dont naively believe in negative gearing.

Buy only when the units can give you a rental yield (after minus maintenance fee) higher than + loan interest rate + FD rate (lost of opportunity cost) + 2% minimum safety margin to account for OPR rise later

E.g. Property auction price 400k, after lawyer fee, stamp duty, MOT = 450k
Rent = 2000 per month *12
Maintenance fee = 500 per month *12
Loan interest 3%
FD rate 1.75%
Minimum Safety margin = 2%

(2000 - 500)*12/450k = 4% - 3% - 1.75% - 2% = -ve

To determine the maximum property price that is OK (still not a good deal because we have not include possible repair/rennovation/refurbish fee), but at least still OK to buy
(2000 - 500)*12/(Loan interest + FD rate + minimum safety margin) = 267k

This post has been edited by HereToLearn: Aug 9 2020, 08:31 PM

To me personally is not to buy any property if you cant find such a deal (which is almost impossible for now), just continue renting for now. Dont FOMO (If no one buys, the market will be able to enter the correction needed unless rental is raised with increased in minimum wages). Just look at the NAPIC data, supply is still much larger than demand.

In an article published this month, I remember it stated that some states' supply is 6x the demand. There is really no need to panic buy right now. Dont be so quick to catch the falling knife.

This post has been edited by HereToLearn: Aug 9 2020, 08:36 PM

If dont have, just rent. Use your capital to invest in stocks with dividends (of course with strong fundamentals with growth if possible) and use the dividend to pay rent.
Wait the price drop and buy at just about the right price later. You get free stay for years with dividends and get to buy newer projects at the right price.

Else if you loan to buy at overvalued price (you get a lot of commitment) with negative gearing on your investment.

You are exactly right. My plan is to keep renting and monitor the supply to demand closely from time to time. I dont expect the property price to rise with the supply is few times larger than the demand.

Property prices will only rise if demand > supply or minimum wage is raised.

You can clearly see that the prices are dropping from the auction prices. It is getting lower and lower. But with auction gurus flocking the auction market. I am expecting it to stagnant or even spike up very very little for a while. But keep monitoring, if auction supplies somehow >> bidders, maybe the miracle of getting KL studio with positive gearing investment (higher than loan + maintenance + FD + safety margin) will happen =D.

I myself also have a quick glance of the prices and news every month to keep myself updated.

When the housing index chart looks something like this

Opps my bad. I was just showing the trend, that when the index goes negative, we will have the chance to buy at the just about the right price from auctions. I hereby update you with the percentage change graph, it shape looks identical to the housing index that I uploaded. As of 2019, the capital appreciation is so insignificant, and yet people still go for negative gearing. Good luck guys

https://www.theedgemarkets.com/content/even...st-decline-4q98

GDP drop that rivals AFC 1997/98.
1997/98 asian financial crisis property price drop is 30-40% with the avg of 37%

Car is a lot more cheaper, so auto sales up normal la given that there is discount (from government stimulus)

Lelong fire sales
round 1 starting Jan 2021 (from moratorium) go in 6th round (40% drop from reserved price) = July 2021
round 2 starting April 2021 (from extended moratorium), go in 6th round (40% drop from reserved price) = Oct 2021

https://www.edgeprop.my/content/1725664/vac...ly-2021-zuraida

Lai liao lai liao, 150k KL studio please

Cheapest now is 250k 775 sqft
https://www.propertyguru.com.my/property-li...ne-tan-22588019

Wow, never think of that. They surely can do that. Gov will be happy too to get more revenues.
But with this, maybe developers wont suka suka build new buildings anymore?

Please refute my argument if you see holes in it, so I can learn more from you lol. That idea was never in my mind

LOL, why u so bad

But he is not entirely wrong though, look at the property prices now, decreasing

This post has been edited by HereToLearn: Aug 24 2020, 07:59 PM

https://www.freemalaysiatoday.com/category/...y-markets-fate/

Soon, just wait for the boom to start landing from Jan 2021